Summit Materials, Inc. (NYSE:SUM) Q1 2018 Earnings Conference Call - Preliminary Transcript

May 08, 2018 • 11:00 am ET


Summit Materials, Inc. (NYSE:SUM) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Greetings. And welcome to the Summit Materials first quarter 2018 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions]. As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Noel Ryan. Please go ahead.

Noel Ryan

Good morning and welcome to Summit Materials' first quarter 2018 results conference call. Leading today's call are Summit's CEO, Tom Hill, and CFO, Brian Harris.

We issued a press release before the market opened this morning, detailing our first quarter results, and we also published an updated supplemental workbook highlighting key financial and operating data, which can be found in the Investors section of our website at

This call will be accompanied by our first quarter 2018 investor presentation, which is available on the Investors section of our website.

I'd like to remind you that management's commentary and responses to questions on today's call may include forward-looking statements, which, by their nature, are uncertain and outside of Summit Materials' control.

Although these forward-looking statements are based on management's current expectations and beliefs, actual results may differ in a material way.

For a discussion of some of the factors that could cause actual results to differ, please see the Risk Factors section of Summit Materials' latest annual report on Form 10-K filed with the SEC.

Additionally, you can find reconciliations of the historical non-GAAP financial measures discussed in today's call in this morning's press release.

Today's call will begin with remarks from Tom Hill, who will provide an update on our business and market conditions entering construction season, followed by a financial overview and outlook from Brian Harris. At the conclusion of these remarks, we'll open the line for questions.

With that, I'd like to turn the call over to Tom.

Thomas Hill

Thank you, Noel. And welcome to today's call.

Turning to slides four and five of the deck, given the seasonality of our business, the first quarter has little impact on our full-year outlook, representing less than 2% of full-year adjusted EBITDA.

Our business had strong momentum heading into the start of our busy construction season, supported by accelerating activity in our largest private and public markets.

Today, we increased our full-year 2018 adjusted EBITDA guidance from a range of $490 million to $510 million to a range of $495 million to $515 million, which includes contributions from four acquisitions closed since our last update in February.

We continue to anticipate mid to high-single-digit organic EBITDA growth this year as detailed in the bridge on slide five.

Since January, we've completed seven acquisitions for a total invested capital of $154 million. Recent acquisitions have further established our leadership in well-structured material-based markets in Utah, Texas, Oklahoma, Kansas, Kentucky and Missouri.

The acquisition pipeline remains very active as we look ahead to the remainder of the year, with multiple transactions currently in various stages of diligence.

Turning to slides six through eight, the LTM